The move shows how auto manufacturers are both lowering their costs of production and passing that onto the consumer, but also looking to spur the sometimes slower-than-expected sales of electric cars.

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Around 43,000 Volts have been sold, according to reports, but that’s under what GM had been hoping for by this time. The price cut could help the Volt compete more effectively with Nissan’s less expensive LEAF and the still strong-selling Prius. Tesla’s Model S electric car is in the luxury category and more expensive.

GM’s Volt has a range of about 40 miles on its battery and then a gas-powered engine kicks in. GM is hoping that this added “range-extender” will help beat range anxiety in this early stage of electric cars, when there aren’t a lot of chargers around. Nissan’s LEAF and Tesla’s Model S are all-electric cars, with bigger batteries, but less complicated cores.

Check out GigaOM writer Kevin Tofel’s review of his Chevy Volt and how it’s been working with his solar panels.

Don’t buy an electric car just yet. Maybe next year it will drop by another $5,000. These things will be priced like plasma tvs. So far Chevy is telling me “yes the new Volt is $5k less, and thank you for paying the higher price. No refunds or adjustments.”

The Tesla is gorgeous, also, and a car I’d most want. Given another chance, though, I’d certainly buy another Volt. I can’t afford a Tesla. I also need the Volts unlimited gasoline range for occasional long trips. If I could afford a Tesla, I’d get more seats and a lot more power!